Tata Group is reportedly mulling an injection of $1 billion (₹8,319 crore) in fresh capital into its super-app venture. This would be in addition to the $2 billion (₹16,638 crore) invested earlier this year.
What Happened: The group intends to allocate this new funding to Tata Digital in the forthcoming year, subject to finalising the deal, Economic Times reported, citing sources. The conglomerate has also advised its digital unit to address app glitches and enhance operational efficiency for user-friendliness.
Tata Group has also encouraged the super-app venture to explore potential funding from global sovereign and financial investors, emulating a strategy akin to its competitor, Reliance Retail Ventures. The latter secured investments at a $100 billion (₹8.32 lakh crore) valuation in recent months.
Tata Neu, Tata Group’s super app, inspired by China’s Alipay and WeChat, has encountered technical issues and customer complaints shortly after its launch last year.
Tata Neu offers a range of services, including grocery shopping, flight bookings, restaurant reservations from Tata-affiliated brands, and membership services. It also provides financial products such as bill payments, loans, and insurance.
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Over the past three years, Tata Group has invested more than $2 billion and acquired companies like Bigbasket and 1mg to bolster its e-commerce portfolio.
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